Some Basic Tips to Increase Your Confidence as an Investor

Some Basic Tips to Increase Your Confidence as an Investor Every new beginning can be just as unnerving as it is exciting. There are plenty of new skills to learn and ideas to grasp, as well as several existing ideas and notions to unlearn. However, if one overcomes this initial phase of apprehension, the journey ahead is usually a rather enriching and satisfying one. The same holds good for financial planning and investment in securities. As a new investor, it is natural to feel somewhat intimidated by the various terminologies and strategies you may come across. Added to this is the requirement to chalk out a concrete plan based on your investment objectives and other such factors. However, overcoming these initial inhibitions can help you to lead a financially secure future. So, here are some general tips that can help to boost your confidence as you start out on your investment journey: 1. Evaluate What You Expect from the Investment Avenue All investment journeys begin with an assessment of one’s requirements and objectives, risk tolerance levels and expectations. As a beginner, think about what goals you would need to fulfil through your investment avenues, as well as your current financial status and requirements. Consider the various aspects of your investment, including your short-term and long-term financial objectives, your current salary, and whether you are financially supporting any individuals in your family. 2. Dream Big – But Start Small! Yes, it may be enticing to dream about investing in investment avenues that promise exceptionally high returns. However, such securities also entail huge risks that one would need to alleviate tactfully and carefully. These tactics are learnt over time, and by starting small, you have sufficient time to experiment with investments and learn from your mistakes. Low-risk avenues like company FDs, recurring deposits and savings accounts ensure that you do not suffer huge losses while also serving as stepping-stones along the way. 3. Avoid Over-Investing. While diversifying your portfolio is a great idea to avoid risks and reap steady returns, it is important to have a specific method to carrying out these investments. Just like the proverb says, “too many cooks spoil the broth,” investing in too many securities all at once can cause serious setbacks and impede one from achieving his/her objectives. While formulating your plan, think about the specific avenues

that would help you to achieve your targets in a systematic and efficient manner. You could opt for mixed mutual funds investments with sufficient proportions of stocks, bonds and other such securities and allocate your funds accordingly. 4. Balance Insurance and Investment Optimally. Investment and insurance typically go hand-in-hand in securing one’s future and helping him/her to alleviate risks along the way. Buying life and health insurance covers helps one to achieve his/her objectives better and receive monetary compensation during unforeseen circumstances. Besides these basic insurance covers, evaluate what other insurance policies may be relevant for you, including auto insurance and property insurance. 5. Know Your Basics. As simplistic as this tip may sound, it is probably one of the most important solutions to boost your confidence and stand on your feet while proceeding ahead. In this digital era, information is available to individuals at the press of a button, thus enabling one to understand and evaluate his/her avenues as well as the existing economic conditions. Start from the very basics, including stocks, bonds, mutual funds, financial planning and certain other important terminologies that comprise the foundation for a successful investment journey. It also works to learn about the various metrics to evaluate stocks and other investments, and the intricate correlations between these asset classes. 6. Ask For Help When You Need It. Help is always just a call or click away, so it is important to ask for help when you need it. Your financial journey may be rather long and arduous, and having the right professional support makes a world of difference in boosting your morale. Many investment advisors and online stock brokers in India provide consultations and advise online as well as in person. Before seeking professional help for your investment, verify the expert’s credibility and experience so that you know you are consulting the right individuals. Conclusion

Investment is often misconstrued as akin to gambling. However, it is, in fact, more like a game of chess, where applying your mind and treading with caution reigns over merely relying on chance. And we would be more than happy to help you attain “checkmate” on this journey!